Oliver Mangan, Chief Economist at AIB, discusses the greater uncertainty and volatility of foreign exchange markets over the previous year.
Currency Volatility Set to Continue
A noticeable feature of foreign exchange markets this year has been much greater uncertainty and volatility, writes Oliver Mangan, Chief Economist at AIB.
Key exchange rates have moved out of well-established trading ranges, while there have been big currency moves over short periods of time, as well as increased volatility, with currencies moving in one direction and then another.
The major trends are clear, though, with the dollar and sterling rising strongly against the euro in the year to date in a continuation of the trend evident for much of 2014.